The Nigerian Exchange (NGX) closed lower on Tuesday as investors locked in gains from recent market advances, triggering widespread profit-taking across major banking, industrial and consumer goods stocks. The sell-off wiped about N468.63 billion from the market’s total equity value, with market capitalisation falling from N163.99 trillion on Monday to N163.53 trillion at the close of trading.

The benchmark All-Share Index (ASI) also declined by 721.91 points, representing a 0.29 per cent drop, to settle at 251,913.20 points, compared with 252,635.11 points recorded in the previous session. The decline reflected increased selling pressure as investors took advantage of recent gains, particularly in some of the market’s heavyweight counters.

Several major stocks came under pressure during the session. Sovereign Trust Insurance recorded the biggest decline, falling 9.92 per cent to N2.36, while Unilever Nigeria dropped 8.55 per cent to N100.50. Neimeth International Pharmaceuticals declined by 6.02 per cent to N7.80, while BUA Cement lost 3.10 per cent to close at N287.80. Banking giants GTCO and Zenith Bank also retreated by 3.28 per cent and 1.03 per cent to N132.50 and N134.00, respectively.

However, the session was not entirely negative, as some stocks attracted strong buying interest. NPF Microfinance Bank and LivingTrust Mortgage Bank topped the gainers’ table, each rising by 10 per cent to N4.40 and N2.86. WAPIC gained 9.95 per cent to N2.43, VFD Group advanced 9.84 per cent to N13.40, while Transcorp Hotels climbed 9.42 per cent to N290.50. The Insurance sector was the only major sectoral bright spot, with its index gaining 0.38 per cent to 1,098.22 points.

Sector performance, however, remained broadly negative, with the NGX Banking Index falling 0.91 per cent to 2,727.81 points. The Consumer Goods Index declined 0.83 per cent to 4,056.52 points, while the Industrial Goods Index dropped 0.91 per cent to 10,372.27 points. Despite the sell-off, trading activity remained substantial, with 548.65 million shares exchanged in 47,203 deals, highlighting continued investor participation even as profit-taking weighed on the broader market.

source: punch